Share Block Sale Agreement Template for South Africa

The Share Block Sale Agreement is a specialized legal document used in South Africa when transferring ownership rights in a share block scheme. This type of agreement is essential when selling shares in a share block company, where ownership of shares gives the holder the right to use and occupy specific portions of the company's property. The document is structured to comply with the Share Blocks Control Act 59 of 1980 and other relevant South African legislation. It should be used whenever there is a transfer of share block ownership, whether for residential, commercial, or holiday accommodation purposes. The agreement includes crucial details about the share block company, the specific shares being sold, associated use rights, financial terms, and company rules. It differs from traditional property sales as it involves the transfer of shares rather than direct property ownership, requiring specific provisions to protect both parties' interests within the share block scheme framework.

1. Parties: Details of the Seller and Purchaser, including full legal names, registration/identity numbers, and contact information

2. Background: Context of the transaction, including brief description of the share block company and the property it owns

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement and rules of interpretation

4. Sale of Shares: Description of the share block being sold, including number of shares and corresponding use rights

5. Purchase Price: The agreed purchase price, payment terms, and payment method

6. Conditions Precedent: Any conditions that must be fulfilled before the agreement becomes fully effective

7. Transfer of Shares: Process and requirements for transferring the shares, including timing and documentation

8. Use Rights: Detailed description of the purchaser's rights to use the property associated with the share block

9. Company Rules and Regulations: Acknowledgment and acceptance of the share block company's rules and regulations

10. Warranties and Representations: Warranties given by both parties regarding their capacity to enter into the agreement and the status of the shares

11. Costs and Taxes: Allocation of transaction costs, transfer duty, and VAT implications

12. Risk and Benefit: When risk and benefit in the shares and use rights passes to the purchaser

13. Breach and Termination: Consequences of breach and termination provisions

14. Dispute Resolution: Process for resolving disputes between the parties

15. General Provisions: Standard contractual provisions including notices, entire agreement, and variation